Mexico Joint Venture Acquisition

On April 1, 2019, the Company purchased a 60% interest in Manhattan SKMX, de R.L. de C.V. (“Skechers Mexico”) for a total cash consideration of $100.7 million, net of cash acquired.  Skechers Mexico is a joint venture that operates and generates net sales in Mexico.  As a result of this purchase, Skechers Mexico became a majority-owned subsidiary of the Company and its results are consolidated in the Company’s condensed consolidated financial statements.  The formation of the joint venture provides significant merchandising, supply chain and retail operations in Mexico. The company is in the process of preparing a purchase price allocation and the finalization may result in changes in the valuation of assets acquired and liabilities assumed.  The Company will finalize the purchase price allocation as soon as practicable, but not to exceed one year following April 1, 2019.  Pro forma results of operations have not been presented because the effects of the acquisition, individually and in the aggregate, were not material to the Company’s condensed consolidated financial statements.